Information gap decision theory–based risk-constrained energy management of AC microgrids

Abstract In this chapter, to model pernicious and beneficial aspects of power price on the optimal operation of an AC microgrid (MG), the information gap decision theory (IGDT) is utilized. To assess positive sides of the uncertainty, the opportunity function is used, and to model negative aspects, the robustness function of the IGDT method is used. Obtained results are provided in three strategies as risk-averse, risk-neutral, and risk-taker to give precise realization of the impacts of power price uncertainty. In each strategy the problem is solved in two cases, with and without demand response (DR), to show the impact of DR providers and load reduction of industrial loads, which are utilized to reduce total operating cost of the MG. Finally, the problem is formulated as mixed-integer nonlinear programming solved using the DICOPT solver in GAMS optimization software. All simulations are carried out on a modified IEEE 33-bus system.